GOODWILL AND INTANGIBLE ASSETS
The Company tests goodwill annually and also if events or changes in circumstances indicate the occurrence of a triggering event which might indicate there may be impairment. The Company performs its goodwill impairment analysis for each reporting unit that constitutes a component for which (1) discrete financial information is available and (2) segment management regularly reviews the operating results of that component, in accordance with the provisions of ASC Topic 350, Intangibles-Goodwill and Other.
The Company reviews goodwill for impairment by initially considering qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative analysis. If it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative analysis is performed to identify goodwill impairment. If it is determined that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, it is unnecessary to perform a quantitative analysis. The Company may elect to bypass the qualitative assessment and proceed directly to performing a quantitative analysis. An impairment loss is recognized for the amount that the carrying amount of the reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. The Company did not identify any impairment charges during the years ended December 31, 2025, 2024, and 2023.
The following table represents activity in goodwill by segment:
| | | | | | | | | | | | | | | | | |
| Home Health and Hospice Services | | Senior Living Services | | Total |
| December 31, 2023 | $ | 87,372 | | | $ | 3,642 | | | $ | 91,014 | |
| Additions | 38,110 | | | — | | | 38,110 | |
| | | | | |
| December 31, 2024 | 125,482 | | | 3,642 | | | 129,124 | |
| Additions | 108,122 | | | — | | | 108,122 | |
| | | | | |
| December 31, 2025 | $ | 233,604 | | | $ | 3,642 | | | $ | 237,246 | |
Other indefinite-lived intangible assets consist of the following:
| | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 |
| Trade names | $ | 18,161 | | | $ | 8,465 | |
| Medicare and Medicaid licenses | 181,281 | | | 87,717 | |
| Total other indefinite-lived intangibles | $ | 199,442 | | | $ | 96,182 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.